U.S. Inquiry Focuses on Anaheim Bank Chairman’s History

American Commerce National Bank, which has been in operation for only 40 months, is in the midst of its seventh examination by federal regulators, the Anaheim bank’s chairman and chief executive told shareholders at its annual meeting Thursday.

Gerald J. Garner said the current audit, which began four weeks ago, centered at first on his background and his role in the formation of the bank. But he said he was confident that the U.S. Office of the Comptroller of the Currency would not find any cause for action against him or the bank.

In a recent letter to shareholders, Garner acknowledged longstanding claims by the comptroller’s office that he had failed to disclose adequately his interest in the bank and his one-year suspension from the practice of law in New York for misconduct involving the use of false names in an adoption proceeding.

The comptroller’s office says Garner owned or had a beneficial interest in 11.6% of the initial stock--more than twice the 5% per investor allowed under terms of the initial offering. The limit since has been removed, Garner said, and his beneficial interest has grown to 17.46%.

While the comptroller’s office would not discuss its reviews of American Commerce operations, a spokesman did say that seven audits in three years “is perhaps a heavier than usual” number.

In their first annual meeting in 27 months, the bank’s shareholders gave Garner and his top management team a resounding vote of confidence--only two abstained from approving the vote, citing technical reasons.

Garner said the success of the bank can be traced to efforts to create a “family program” in which top managers know nearly all of the bank’s investors and customers. The bank’s assets nearly quadrupled in two years to $69.6 million at the end of 1986 and net income last year nearly tripled to $576,000 from $201,000 the previous year. The bank has written off less than $65,000 in loan losses in its brief existence.

Shareholders also reelected all board members except Donald J. Daniel, a Santa Ana physician who recently sued Garner for alleged mismanagement. Daniel says his pension fund was mismanaged by Garner.